Wells Fargo bid to block FHA suit fails

Wells Fargo (WFC-0.3%) had tried to convince a federal court that 2012's multi-bank mortgage settlement barred the government from suing again over home lending practices, but a three-judge panel says the settlement gives the government the right to pursue further action.

The ruling is likely to increase pressure on the bank to settle a FHA mortgage lawsuit filed in October 2012.

Perhaps Wells Fargo needs to get some better legal representation if they thought they were protected by the original settlement and they were not. This is pretty sad one way or the other. And again it will be the shareholders who get screwed.